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dc.contributor.authorBoehme, Rodney
dc.contributor.authorColak, Gonul
dc.identifier.citationBoehme, R., and G. Colak. 2012. "Primary market characteristics and secondary market frictions of stocks".Journal of Financial Markets. 15 (2): 286-327.en_US
dc.descriptionClick on the DOI link below to access the article (may not be free).en_US
dc.description.abstractWe analyze the primary market characteristics and the secondary market trading frictions of new stocks. IPOs issued in hot markets, with low offer price, low-reputation underwriters or no VC backing face higher liquidity frictions, higher information constraints, and worse short-sale constraints. Underpriced IPOs are more liquid and more recognizable, but they have higher idiosyncratic risk and higher short-sale constraints. Also, we find an interesting time trend in the evolution of the new stocks' trading frictions: the mean-reversion of an average IPO stock toward a typical seasoned stock takes more than a few years. We propose a quality-based explanation for these findings.en_US
dc.relation.ispartofseriesJournal of Financial Markets;2012:, v.15, no.2
dc.subjectIdiosyncratic risken_US
dc.subjectInformation uncertaintyen_US
dc.subjectInitial public offeringsen_US
dc.subjectMarket frictionsen_US
dc.subjectShort-sale constraintsen_US
dc.titlePrimary market characteristics and secondary market frictions of stocksen_US
dc.description.versionPeer reviewed
dc.rights.holderCopyright © 2012, Elsevier

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